Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were all about 1% higher. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.

Friday also marks the end of the first half of the year. The three major indexes were on pace to close out with gains between 3% and 9%.

At the two-day European Union summit in Brussels, EU leaders struck a "breakthrough" deal early Friday to ease the recapitalization of struggling banks, which should help draw the eurozone back from the brink of its debt crisis.

The deal includes a European banking union with capital injections that will go straight into banks. This will have the potential to reduce what bond analyst Elisabeth Afseth called "the bank-sovereign negative feedback loop."

The Investec analyst in London said the loop starts when a nation borrows to recapitalize its troubled banks, which then increases the country's debt, pushes up bond yields, reduces bond values and forces banks to require even more capital.

Economy: The Chicago Purchasing Managers' Index for June is due at 9:45 a.m. ET from economic consulting firm Kingsbury International. The index is expected to come in at 53, up from 52.7 last month. Any reading above 50 signifies expansion in the region's manufacturing sector.

At 9:55 a.m. ET, the University of Michigan's Consumer Sentiment Index for June will come out. It's expected to hold steady at 74.1.

Companies: Home builder KB Home (KBH) reported a second-quarter loss Friday that was smaller than expected. That sent shares up more than 10% in early trading.

Several large companies that had a rough Thursday afternoon continued sinking early Friday.

Nike (NKE, Fortune 500) shares tumbled more than 10% in premarket trading, a day after the company reported quarterly earnings that missed analyst estimates. The stock fell in after-hours trading Thursday, when it was joined by other sportswear producers and retailers, including Under Armor (UA), Lululemon Athletica (LULU) and Dick's Sporting Goods (DKS, Fortune 500).

Shares of Research In Motion (RIMM) fell 15% early Friday, after the BlackBerry maker reported a wider-than-expected loss Thursday, and another delay of its long-awaited BlackBerry 10 operating system.

Ford (F, Fortune 500) shares slid about 1% in premarkets. The automaker on Thursday lowered its guidance based on poor performance by its international divisions.